Socially Responsible Investing (SRI) panel held by NYWSE and Columbia University’s Multicultural Business Association
January 29, 2009
Diverse non-commercial capital sources for social enterprises in New York City were introduced at the SRI panel last week by panelists from the NYC Venture Philanthropy Fund, the Fast Forward Fund, Givology, Acumen Fund, and Microlumbia. SRI takes the form of grants, loans, or equity investment and is the latest wave of financing for social enterprises today. Regardless of the form, SRI is characterized by its focus on the double bottom line (financial as well as social impact) and accountability for results – not only output or services rendered, but also the impact of these products or services upon individual lives and communities – an even higher standard than commercial enterprises must meet. As traditional financial investors show an increasing acceptance of social as well as financial returns, the non-profit sector is innovating new mechanisms to invest in social enterprises with financially sustainable business models that offer payback to investors (e.g. through loans or equity investment with a limited return).